Announcement of India Expands Road Transport in Four States on October 24, 1988

FOR IMMEDIATE RELEASE Vorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/10 Contact: Richard Kollodge IDA NEWS RELEASE NO. 89/17 (202) 477-4507 INDIA EXPANDS ROAD TRANSPORT IN FOUR STATES WASHINGTON, October 24, 1988 -- The road networks in four Indian states will be upgraded or repaired through a project supported by a loan of $170 mil- lion from the World Bank and a credit of SDR 62.2 million ($80 million) from the International Development Association (IDA). IDA is the World Bank's concessionary lending affiliate. Road transport in India is growing rapidly, but the nation's state road network is underdeveloped and poorly maintained. The $450.2 million project is targeted at expanding roads and building bridges in the states of Bihar, Maharashtra, Rajasthan and Uttar Pradesh. The nroject will cover 2,300 kilometers of road. The project will also finance equipment to be used in road maintenance and traffic safety programs, and training and consultant services will be provided to strengthen the capacity of key government agencies to manage and maintain state roads. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.59 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. The IDA credit is for 35 years, including 10 years of grace; it carries no interest, but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. Note: Money figures are in U.S. dollar equivalents. IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit.